Fund companies mainly rely on collecting the relevant expenses of investors holding funds, such as subscription and redemption fees, management fees, etc., which is to help investors buy and sell funds to make money.

According to the open redemption of funds, funds can be divided into Public Offering of Fund and private equity funds.

Specifically, Public Offering of Fund charges different fund shares according to different charging methods, and investors generally choose a certain share to buy according to their own needs.

There are generally three kinds. Class A shares have subscription fees but no service fees, and investors need to pay the subscription fees at the time of subscription; There is also a subscription fee for Class B shares, and there is no service fee, but this subscription fee will only be collected when the fund is redeemed; Class C shares do not charge subscription fees, but charge service fees.

In our country, there are common categories A and C. In category A, fund companies charge fees from fund subscription and fund redemption to make profits. In addition to direct sales by fund companies, fund companies usually entrust relevant sales organizations to sell fund products on a commission basis, so the subscription fee will be divided between the sales organizations and fund companies; As for the redemption fee, in general, 75% belongs to the fund company to pay for the company's operation and fund-related procedures, and 25% is transferred to the fund assets and belongs to the investors who have not redeemed the fund. Moreover, if you hold it for less than one month, you need to pay a punitive redemption fee, which will all be transferred to the fund assets.

Among the Class C shares, fund companies make profits from fund management fees. If there is an entrusted sales organization, they will give some to the sales organization. However, due to the different incentive measures and processes of different companies, the specific sharing situation is also different.

In addition, private equity funds will collect a part of the fund's profit income in addition to the formalities fee, so as to obtain profits. Therefore, in terms of performance, the operation of private equity funds will be more active, but it does not mean that public offering is not good. Either way, the fund company's operating performance is directly linked to investors. If we don't try our best to help investors, then the company will gradually lose trust and be eliminated by the industry.